Latent View Analytics (LATENTVIEW) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached INR 2,869 million ($30.3 million), up 21.6% YoY but down 0.6% sequentially; global workforce exceeds 1,800, with AI-led work comprising 80% of projects.

• Consumer goods practice saw a dip due to non-renewal of projects, but a strong Q2 recovery is expected; technology practice grew 4% sequentially.

• Strategic priorities include deepening client relationships, expanding data engineering, and embedding AI across business processes.

• Added six to seven new accounts in financial services and auto components, with a strong pipeline in AI, healthcare, and retail.

• Ms. Sonal Ramrakhiani was appointed CEO, focusing on execution and client relationships.

Financial highlights

• Q1 FY27 revenue from operations was INR 2,869 million, up 21.6% YoY; adjusted EBITDA was INR 586 million, margin 20.4%, but down 15.7% QoQ.

• PAT for Q1 FY27 was INR 471 million, down 6.9% YoY and 14.5% QoQ; basic EPS was INR 2.33.

• Wage hikes for 70% of workforce impacted margins by 2.7%; average hike was 8%.

• Volume discounts and insourcing in major accounts reduced revenue by $900,000.

• Project-led work is 15%-18% of portfolio, managed services 65%-70%.

Outlook and guidance

• Full-year revenue growth guidance maintained at 12%, with confidence based on confirmed deals and pipeline.

• Q2 expected to see a strong bounce back, especially in consumer goods and Databricks-related work.

• Margin guidance for FY27 remains at 20%-21%, with investments in AI and partnerships expected to offset currency benefits.

• Focus on analytics solutions and strategic investments, including a SAFE Note investment in Healtheon AI INC.